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HMS Holdings sues Dale Earnhardt Inc. over termination fee
By Bob Pockrass - Associate Editor
Tuesday, November 25, 2008
HMS Holdings, which operates the Hendrick Motorsports engine shop, is suing Dale Earnhardt Inc. for $1.5 million for the payment of a termination fee stemming from a contract to supply Hendrick engines to Ginn Racing.
Ginn Racing, which also is a defendant in the suit filed Friday in North Carolina Superior Court, merged with DEI in July 2007.
As part of the merger, DEI and Ginn Racing signed a termination agreement to a contract that was originally signed by Ginn in 2006.
The termination agreement required payments to HMS of $1.754 million by July 31, 2007, and $1.5 million by Nov. 15, 2008, according to the suit.
The first payment was made on time. The second payment has not been made, according to the suit.
The original engine contract and termination agreement are not included in the suit, so it is unclear how much Ginn was paying to use Hendrick engines.
HMS is asking for the $1.5 million, 12 percent interest and an additional $225,000.
Hendrick Motorsports spokesman Jesse Essex said the company is looking forward to a swift resolution of the lawsuit. Dale Earnhardt Inc. Vice President John Story said the company has no comment.
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34 responses to "HMS Holdings sues Dale Earnhardt Inc. over termination fee". Post a Comment.
MARTIN said:
Nov 25, 2008 at 3:38 PMDoes it ever end with DEI? Bad publicity is not good for anyone.
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» Confirm Abuse ReportRo Min said:
Nov 25, 2008 at 3:39 PMFigures
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» Confirm Abuse Reportdavid larison said:
Nov 25, 2008 at 3:52 PMThe old man (D.E,sr) is spinning in his grave.
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» Confirm Abuse ReportAndrew Briscoe said:
Nov 25, 2008 at 4:19 PMGreat way to end DEI, with failing to pay over $1.5M. Go Teresa, you can't harm that company too much more.
Report as AbuseI wonder, since the deal of DEI merging was announced before November 15, whether or not they could use that excuse in court. It most likely wouldn't hold up if it did, but I think we could all use another good laugh from DEI's free fall.
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» Confirm Abuse ReportMicro Tard said:
Nov 25, 2008 at 4:44 PMIt is truly impossible to believe how badly Theresa Earnhardt has managed her late, great husband's vast enterprise. Letting Jr. go was a true act of egotism mixed with massive amounts of idiocy. It is sad to see what has become of this once great organization.
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» Confirm Abuse ReportBernadette Motherway said:
Nov 25, 2008 at 4:50 PMI just told my husband the other day the exact same thing that David Larison said. Dale started that company from nothing and within a short period of time it is virtually non-existent. What a shame. Dale's dream for that company certainly has not been carried out.
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» Confirm Abuse ReportWerner Boehmert said:
Nov 25, 2008 at 5:38 PMand i thought cell phone early termination fees where high...
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» Confirm Abuse ReportEarl Abel said:
Nov 25, 2008 at 6:50 PMFOREVER3GODALEJR.!!!
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» Confirm Abuse ReportRyden Caparelli said:
Nov 25, 2008 at 6:53 PMI hope what was DEI loses this battle too. The ghose of the 3 and real 8 car side by side will be haunting this team forever.
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» Confirm Abuse ReportScot Chandler said:
Nov 25, 2008 at 8:27 PMTHE LATE GREAT DALE EARNHARDT SHOULD HAVE HAD A DISCLAIMER THAT WOULD NOT HAVE LET TERESA RUN THIS INTO THE GROUND. I'M WITH "DW" THIS COMPANY WAS FOUNDED FOR DALE JR TO TAKE OVER NOT WALK AWAY FROM BECAUSE OF THE EVIL STEPMOTHER'S IGNORANCE. HE IS REALLY ROLLING IN HIS GRAVE. ANOTHER GOOD MOVE FOR DEI. WAY TO GO TERESA !!!!!!
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» Confirm Abuse Reportsaid:
Nov 25, 2008 at 8:37 PMBy forcing Dale Jr and Kelley out of DEI Teresa must have thought that she had truly won the war. But as the old saying goes she won the BATTLE and has lost the war. I fail to believe that she is so selfish as to have believed that Dale didn't love ALL his children and want what was best for ALL of them. Teresa has truly demonstrated the extreme concepts of CONTROL, GREED and STUPIDITY since Dale died. Good luck Teresa! I wouldn't look to my stepkids to bail me out if I were you. What kind of role model are you setting for Taylor? You have created this mess you are in, now create a way out of it and still have cash!
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» Confirm Abuse ReportLinda Hannagan said:
Nov 25, 2008 at 8:49 PMI remember, like it was yesterday, Big E stating that if it weren't for Theresa, he would never be where he got to be. He always praised her for helping him build his "empire". How the Hell did such a smart woman do such a miserable job running his "empire" into the ground. There is only one answer: GREED God rest Big E, he is spinning in his grave. Theresa----wake up and look at what you've done to your husbands wishes for his company. You have lost the respect of any and everyone by being such a egotistical woman.
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» Confirm Abuse ReportKenneth Farley said:
Nov 25, 2008 at 8:49 PMDoesn't Rick Hendrick have enough money? This agreement isn't because of DEI, it's because of the merger with DEI, who already has a contract with Hendrick. The jist is, they are trying to collect double fees, and that ain't right.
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» Confirm Abuse ReportDarlene Paskoll said:
Nov 25, 2008 at 9:21 PMNo way this is Teresa's fault. Leave it to his parasitic son to make her and his father's legacy dirt. It played right into his hands. He's a spoiled child who does not deserve ANY of the praise he gets. He's only parasitically riding his father's coat-tails. Who would he be if his father was still alive? Why did his father not leave, even partially, DEI? Ask yourself.
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» Confirm Abuse ReportTom Jones said:
Nov 25, 2008 at 10:48 PMWOW. These are harsh words over a business deal.There was only one Dale Earnhardt and he did what he thought was the right thing for himself and his family.Jr is a very good driver but has a different driving style than his dad. "The wicked stepmother" helped Dale build DEI and has made some bad decisions since Dale's death.Teresa has hired people to run this operation and they haven't made the best decisions for the company. How many of the companies out there at this time are worth a darn? CEO's,COO's,etc. in today's businesses should all be fired and probably put in jail.They have hired all of the family members at one time or another.This may not have been a good idea either but I bet they all took pride in the fact that they worked for Dale's company.They may be able to hang on to DEI ut if they don't Jr Motorsports should be around for a while.Hang in there and keep up the support as it is needed more now than ever.
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» Confirm Abuse ReportTom Jones said:
Nov 25, 2008 at 10:49 PMWOW. These are harsh words over a business deal.There was only one Dale Earnhardt and he did what he thought was the right thing for himself and his family.Jr is a very good driver but has a different driving style than his dad. "The wicked stepmother" helped Dale build DEI and has made some bad decisions since Dale's death.Teresa has hired people to run this operation and they haven't made the best decisions for the company. How many of the companies out there at this time are worth a darn? CEO's,COO's,etc. in today's businesses should all be fired and probably put in jail.They have hired all of the family members at one time or another.This may not have been a good idea either but I bet they all took pride in the fact that they worked for Dale's company.They may be able to hang on to DEI ut if they don't Jr Motorsports should be around for a while.Hang in there and keep up the support as it is needed more now than ever.
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» Confirm Abuse Reportlori stonesifer said:
Nov 25, 2008 at 11:26 PMIf you have a contract -- you have a contract -- if you partner with someone who has a contract -- you have a contract. Pay up you conniving old b.....
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» Confirm Abuse ReportPearl Roll said:
Nov 26, 2008 at 12:41 AMGood God get off the womens back already. You act like you know so dam much about someone elses business-when you actually hear only what some idiot reporter writes. You are all such good, smart business people then you go run a racing team and see how easy it is. Big baby Jr. didnt get what he wanted so now she is dog meat-give ne a break. She has to do what she needs to for herself and even Jr. admits that. You are all so judgemental. You dont know her!
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» Confirm Abuse Reportpatricia jordan said:
Nov 26, 2008 at 1:40 AMtrust me dale and kelly are forever tied to dei sink or swim im sure they all have shares in the company,, that dont amount to much any more i understand teresas grief but she should have been willing to allow help from the earnhart kids instead of trying to control it all alone,,,
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» Confirm Abuse Reportsaid:
Nov 26, 2008 at 2:13 AMhey darlene paskoll you must first know how nascar works before you open your big trap
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» Confirm Abuse ReportDan Johnson said:
Nov 26, 2008 at 7:27 AMDEI needs a stimilus package.JR.?
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» Confirm Abuse ReportTom Ellis said:
Nov 26, 2008 at 8:17 AMThis is a very bad economy - the weak will not survive. Now that DEsr and DEjr are gone - the name is only a hollow shell
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» Confirm Abuse ReportFern Sunday said:
Nov 26, 2008 at 8:44 AMTeresa deserves everything she gets for being such a greedy b.
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» Confirm Abuse Reportshirley proffitt said:
Nov 26, 2008 at 8:52 AMdei need dale jr that it.
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» Confirm Abuse ReportJack Keough said:
Nov 26, 2008 at 8:56 AMhey teresa,you made such a big deal shortly after sr's death about saving sr's legacy hows that working for you
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» Confirm Abuse ReportCallaway said:
Nov 26, 2008 at 9:27 AMThis is no big deal folks this will quietly go away the bill will be paid. No need to get the TE lynch mob fired up again or her apologists lined up to support her every move over a piddling 1.5 million. More than likely it got lost in the shuffle of Bobby Ginns departure and DEI taking over his operation and it was a case of are you taking care of that out of your end or are we and it slipped through the cracks. 1.5 million doesn't mean a whole lot in Nascar even with all the woe is me wailing going on now.
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» Confirm Abuse Reportmarian mcclain said:
Nov 26, 2008 at 9:59 AMSeems Teresa is a bad manager and makes bad decisions. I think she treated Jr, and her stepkids wrong. Dale Sr. should have done a better job in his will. I hope DEI goes down and they need to pay HMS the money owed. Go JR. Don't need to be compared to your father. You are your own person. Just be you.
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» Confirm Abuse ReportK Uberbacher said:
Nov 26, 2008 at 10:05 AMYou jackals are missing the whole point. Why should Earnhardt pay Hendrick $1.5 million dollars for NOTHING.
Report as AbuseBobby Ginn owes the money, Bobby Ginn should pay the money, or his name should be on the lawsuit.
It doesn't have anything to do with mismanagement of anything; it has to do with a payoff for SERVICES NOT RENDERED.
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» Confirm Abuse ReportBarb Kinney said:
Nov 26, 2008 at 10:11 AMYou people need to grow up. Dale Sr. & Teresa built DEI not Dale Jr. or his boss Kelly. He put them both through enough in his time at DEI and for him and his greedy boss Kelly to think they should have 51% is bull.No one knows what went on at DEI in meetings which most of them Jr. did not even attend he sent the boss Kelly. There are 4 Earnhardt children not just Kelly & Dale Jr. who by the way has done nothing but whine about the money it cost him to run the team & he has the help of Hendrick.
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» Confirm Abuse Reportdebra bates said:
Nov 26, 2008 at 10:34 AMits not dale jr fault that his evil stepmother losssing dale sr business she doesnt know how to manage the money part of it all she seen was dollar signs in her eyes
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» Confirm Abuse ReportAndrew Briscoe said:
Nov 26, 2008 at 1:08 PMK Uberbacher, maybe you need to read the article again, and not just the title. Ginn Racing IS also a defendant in the lawsuit. Ginn Racing merged with DEI, and with that, DEI assumed the debts and everything that Ginn Racing had. The contract is valid unless both parties agree to end it, which Hendrick's engine department decided against.
Report as AbuseDEI and Ginn Racing, being the same entity now, would both be responsible if any contracts were broken. They didn't pay the money that they agreed to pay in a contract, they broke the contract, now they're going to have to pay more.
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» Confirm Abuse ReportGeorge Rice said:
Nov 26, 2008 at 1:52 PMTeresa and Max Segial (head of global operations) fell asleep at the wheel. When you sign a business deal in front of lawyers and file it in a contract it is binding. Pony up Max and Teresa the JUDGE's gavel is about to "start your engines"
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» Confirm Abuse ReportDarlene's Dad said:
Nov 26, 2008 at 3:47 PMCan you imagine explaining this to a new NASCAR fan? Doesnt Dale Earnhardt Jr. drive for Dale Earnhardt Inc? Um, no he drives for another guy. Why? Well, Earnhardt Jr. said it was becuase they were not keeping up with the technology needed to be competitive anymore. The owner, his step mom, said it was because Junior appears in rap videos.
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» Confirm Abuse Reportrandy hayes said:
Nov 29, 2008 at 12:39 AMTeresa and the rest of that outfit broke a valid contract that they signed with HMS.They should be sued.she's an idiot.
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